Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1887-07-28
THE RAILROAD INQUIRY.
Further Testimony Taken Concerning the
Central Pacific RaiIrnad Afiairs.

SAN FRANCISCO, July 27th.-At the session of
the Pacific Railroads Investigating Commission
to-day, 4. A. Cohen was examined as q witness.
He testified that he now resides in New York,
and has been at times retained by the Southern
Pacific Company as attorney. In answer TO in
terTegations, he gave information concerning
suits of the Central Pacific i'll which he was
employed. He was also questioned concerning
the Contract and Finance Company and the
Cotton suit. Mr.. Cohen was next interrogated
and gave data as to dates, etc. of consultations
of the various local railroads which finally
formed what is known as the Central Pacific
system.
lie was asked " In your judgment was the
absorption and consolidation of roads in 1869
and 1870 Of benefit to the Central Pacific or the
reverse %
ut was of benefit to the company it brought
under its control many valuable feeders and a
vast extent of country. The Central Pacific
property might have had greater value had it
been allowed TO conduct its business as any
other corporation would have been allowed to
do. Its earnings have not been allowed TO be
applied to direct construction and improve
ment. Its hands have been tied. The Govern
ment has operated against 1t by the Thurman
Act and other legislation. Other opposing roads
have been subsidized-the Northern Pacific and
Atlantic and Pacific. The Canadian Pacific has
been given privileges in bonding roads and in
competing with the Central. The way things
have been carried on reminds me of the old sys-
TEN of imprisonment for debt. man owes q
debt, but he is put in such a condition that he
cannot pay it."
thing to do with the payment of debt for
which promise has been nader
81 think they have" replied Mr.. Cohen, and
he proceeded to give a few of his reasons for
his opinion. " 1t is just this, Mr.. Anderson, the
Central Pacific was not worth its bonded debt
ten years ago, and is not worth its bonded debt
now. The way the Government has treated the
company has prevented the payment of the
debt"
"Why didn't the millions of earnings go into
the improvement of the road?' asked Mr.
Pattison.
There were many stockholders who de-
manded payments. The condition of the road
before il came over the mountains a dis
tressing one There was not a capitalist here
nor in New York who would take hold of the
work. There was no encouragement. Every
| one said the road could not get over the mount
aims
" Have you any idea of the ability of the
company to meet its obligations asked Mr..
Littler.
g know it will do what it undertakes to do
| it has never failed TO do that yet. In making
| the settlement ii l were advising the Commits
sion. l should look at the matter as a business
man. l should look carefully over the property
| its earnings and value, and then, if desired
should not hesitate to give an extension of
time"
Have you any idea of the loss of the Central
| Pacific by reason of the building of the North
ern Pacific and other competing lines ~
- From information have gained, the loss to
| the road and leased lines since the building of
| the Northern Pacific and Santa Fe, say in the
N.
| haps, $4,000 co.,"
| Mr.. Cohen thought the passage of the Thur
man Act, and lis operations had greatly inter
| fered with the prosperity of the company.
| W. IL. Mills Land Agent of the Central Pa
] clfc, was the next witness and after giving
| data as 10 the time he had occupied his present
position and his duties. he said The company
| to date has 500 900 acres of land patented on
| the Central Pacific line according to my best
| recohections. On the California and Oregon
| $4,000 acres have been patented. Land
patented and for sale on the Central amounts to
81 900 acres; on the Oregon line, 275, 600 The
| difference of the sum of these amounts with
| the totals first given represents the sales of
| land. Mr. Mills explained at length the CON
| dition of the land grant, of the surve VS. aud
settlement 1t is the custom of the road to sur
vey the desirable land first with desire to en-
courage settlement. There is considerable de-
lay in obtaining surveys and patents.
" Is not the failure to obtain patents n desire
on the part of the road to avoid taxation ~
asked Mr. Pattison.
- You speak of motive. If there had been
such would have been notified of It. On the
contrary, have been urged to obtain patents
and title as speedily as possible"
Mr.. Mills said that when a settler applied for a
certain section the patent was applied for.
Mr.. Pattison asked if this practice was not to
| throw the burden of taxation directly upon the
| settler, thus avoiding the payment?
Mr.. Mills denied that there was any such in
| tention on the part OF the company and said
thst, on the contrary, the more district is set
tied the more valuable it becomes to the COM
paDy.